Morsi in Tehran: strategic realignment or a safe pair of hands?

For now, Egypt’s financial stability depends on keeping the US and Saudi Arabia happy.

Egypt’s new President Mohammed Morsi was in China this week before putting in an appearance at the Non-Aligned Movement summit in Iran – all before he has even stepped foot in the US. Several commentators have speculated that this could herald a strategic realignment away from Washington and towards Tehran. The Washington Post hailed the trip as “a major foreign policy shift for the Arab world’s most populous nation, after decades of subservience to Washington”. This seems very unlikely, if not disingenuous, for a number of reasons.

Firstly, the importance of foreign visits and their chronology can easily be overstated. Every reactionary from Doha to Downing St goes to China to do business and – unlike the West – China does not demand political allegiance in return. This trip in itself signifies nothing about Egypt’s foreign policy.

Likewise with Tehran: the Turkish foreign minister and the Emir of Qatar are also attending the summit, yet no one is suggesting that an end to their “decades of subservience to Washington” is on the cards anytime soon. Neither should it be forgotten that, although Morsi has yet to visit the US, he hosted a visit from Hillary Clinton within a fortnight of coming to power, and his first foreign visit as President was to King Abdullah of Saudi Arabia – the West’s number one Arab friend.

Secondly, it is difficult to believe that Morsi’s election would have been received quite so enthusiastically in the Western media had he been seriously contemplating an end to the US alliance. Pundits from the Guardian to the Telegraph were falling over themselves to downplay Morsi’s "Islamism", hype up his “conciliatory” tone and moderation, and reassure the world that he was, in fact, a respectable statesman like any other.

Morsi received just under 25 per cent votes on a 43 per cent turnout in the first round of voting, and managed to just scrape a majority on a 50 per cent turnout in the second round. The “people have spoken” rhetoric in the Western media over this (hardly landslide) victory contrasted sharply with its scorn for the 63 per cent majority won by Iran’s Ahmadinejad (on an 85 per cent turnout) in 2009 – a victory which easily overshadow’s Morsi’s, even after possible anomalies are accounted for.

Third, Morsi’s government looks set to be deepening, not reducing, his country’s economic dependence on the West: a $4.5bn IMF loan is currently under negotiation. The IMF do not do free lunches - they demand their pound of flesh in the form of privatisation of industry, the abolition of tariffs, subsidies and other measures to make life easier for foreign capital (and harder for the poor).

Not that Morsi’s organisation, the Muslim Brotherhood, have any particular objection to such policies – their economic strategy document al-Nahda (“the renaissance”) is a model of the type of extreme neo-liberalism the IMF so adores. They have already pledged to abolish the £10bn annual food and fuel subsidy that is currently a lifeline for the country’s poor, and are committed to the emasculation of the trade unions which were such a potent force in last year’s uprisings.

The parliamentary opposition that might be expected to fight such measures will be neutered if the Brotherhood implements their commitment to end the long-standing rule that 50 per cent of seats in the Egyptian parliament be reserved for workers and farmers. Interestingly, the IMF loan currently being negotiated was rejected by Egypt’s military leaders last summer as being politically unwise – in other words, likely to provoke massive popular outrage. In economic terms, the elites of Egypt and the West are definitely singing from the same songsheet.

Finally, Morsi seems to be playing the role of figurehead for the latest incarnation of the West’s regime change strategy for Syria. Long before his outburst against Assad in Tehran this week, Morsi had nailed his colours to NATO’s mast, claiming that the Syrian government must “disappear from the scene” because “there is no room for talk about reform”. Now he is proposing a new Contact Group for Syria involving Saudi Arabia, Turkey and Iran. It can be assumed this plan has the backing of Washington and London – if indeed it was not initially drawn up by them – by the very fact they did not immediately dismiss the idea as they had in the past. Morsi’s spokesman Yasser Ali explained: "Part of the mission is in China, part of the mission is in Russia and part of the mission is in Iran”(presumably attempting to win Russian and Chinese acquiescence to a NATO-imposed "no-fly zone", as suggested this week by US general Martin Dempsey), before delivering an ultimatum to Tehran not to intervene.

What is more likely to be happening is that Morsi is consciously allowing the idea of a “turn from Washington” to take root in order to gain credibility, allowing his Syria plan to be presented as an “independent regional initiative” in an attempt to undermine Russian and Chinese claims of Western imperialism.

We have been here before. Turkish President Erdogan gained huge prestige across the Arab world three years ago for the supposed "anti-Zionism" he demonstrated walking out of Shimon Peres’ speech at the World Economic Forum, and his grandstanding over the Israeli attack on the Gaza flotilla the following year. But he then went on to use this prestige to garner support for the current proxy war against Syria, the only remaining Arab state to follow its verbal backing for the Palestinian struggle with actual military support. In doing so, he effectively placed himself at the vanguard of the Israeli-Western policy agenda for the region.

Morsi’s Egypt remains financially dependent on the US, and now Saudi Arabia. The US famously provides $1.3bn military aid annually, whilst Saudi Arabia has been the only country to provide loans to Egypt - $4bn worth – since last year’s uprising. Meanwhile, the country has been suffering under the double hammer blows of world recession and the loss of tourism. Egypt’s financial stability depends, in the short term at least, on keeping its two backers happy. In this light, Morsi’s comments this week that his commitment to Western-sponsored regime change in Syria was a “strategic necessity” is quite a candid admission.

 

Egyptian President Mohamed Morsi and his Iranian counterpart Mahmoud Ahmadinejad attend the opening session of the Non-Aligned Movement summit in Tehran (Photograph: Getty Images)

Dan Glazebrook is a History/ Politics teacher and journalist who has written for The Guardian, Counterpunch, Z magazine, the Morning Star and Al Ahram amongst others.

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”